$LKQ (LKQ Corp.)

$LKQ said its acquisitions of Rhiag and PGW were financed by drawing down on its line of credit and the completion of a euro note offering back in April 2016. The company closed 2Q16 with approx. $273MM in cash, of which $196MM was held outside of the US. $LKQ's net debt was approx. $3.1Bil.

$LKQ said it appointed Varun Laroyia as Executive Vice President and Chief Financial Officer, effective October 1, 2017. His most recent role was as CFO of CBRE’s Global Workplace Solutions business since 2015.

Dominick Zarcone’s previously-announced promotion to President and CEO of $LKQ became effective as of May 31, 2017. Robert Wagman, President and CEO from January 2012 until May 2017, became a part-time employee serving as Executive Strategic Advisor primarily relating to mergers and acquisitions. Zarcone was elected to BoD at annual meeting.

$LKQ updated its FY17 guidance for adjusted diluted EPS from continuing operations to $1.82-1.92, from $1.80-1.90 and adjusted income from continuing operations to $565-595MM, from $560-590MM. Organic revenue growth is expected to be in the range of 4-6%.

$LKQ reported 21.5% jump in 1Q17 profit, helped by higher revenues and margin. Net income rose to $136.3MM, or $0.44 per share, compared to $112.2MM, or $0.36 per share during 1Q16. Revenues rose 21.9% to $2.34Bil from $1.92Bil during 1Q16. Adjusted EPS rose 16.7% to $0.49.

$LKQ said Robert Wagman plans to step down as President and CEO. Wagman will remain on a part-time consulting basis, and $LKQ will immediately begin a process to fill CFO position as result of Dominick Zarcone's promotion. Zarcone will be included as a Board nominee at the Annual Meeting. Wagman will not be standing for re-election to the Board.

$LKQ unanimously selected Dominick CFO Zarcone to become the new President and CEO. Robert Wagman has announced his intention to step down from the positions of President and CEO due to health considerations. Also, Joseph Holsten, current Chairman of the Board, was appointed as Executive Chairman.

$LKQ completed agreement to sell the OEM glass manufacturing business of its Pittsburgh Glass Works subsidiary to a subsidiary of Mexican glass maker Vitro, S.A.B. de C.V. for $310MM. $LKQ agreed for its ongoing aftermarket glass distribution business to purchase a specified amount of its automotive glass from Vitro at specified prices.

$LKQ reported a 9.2% drop in 4Q16 profit, hurt by the loss from the discontinued operations. Net income was $86.3MM or $0.28 per share versus $95.1MM or $0.31 per share in the prior year quarter. Revenue rose 23% to $2.15Bil. Adjusted EPS grew 14.7% to $0.39. In Dec. 2016, $LKQ sold its OEM glass manufacturing business to Vitro SAB for $310MM.

As part of the deal to sell its OEM glass manufacturing
business to Vitro S.A.B. de C.V., $LKQ and Vitro have entered into a multi-year
supply agreement pursuant to which $LKQ’s ongoing aftermarket glass
distribution business will purchase a specified amount of its automotive glass
from Vitro at specified prices.

$LKQ has agreed to sell the OEM glass manufacturing business of
its Pittsburgh Glass Works subsidiary to a subsidiary of Vitro S.A.B. de C.V.,
a Mexican glass manufacturer. The sale price is $310MM and the transaction is
expected to be completed in 1Q17, subject to regulatory approvals.

Automobile alternative and specialty parts provider $LKQ announced the acquisition of an equity interest in Mekonomen AB from Axel Johnson AB. Under the terms of the agreement, $LKQ will acquire a 26.5% equity interest in Mekonomen AB from Axel Johnson AB. The acquisition is expected to close in early Dec.

During 3Q16,
organic revenue growth for $LKQ’s parts and services business was 2.1% which
was below expectations. For the North American aftermarket business, the
company continues to see improvements in its total collision SKU offerings as
well as the total number of certified parts available, each growing 12% and 17%
respectively YoverY.

$LKQ cut its 2016 outlook based on higher scrap prices and exchange rates. The company now expects 2016 adj EPS of $1.78 to $1.84, down from its prior outlook of $1.79 to $1.87. Organic revenue growth for parts and services is expected to be 4.5-5.0%, down from the previous range of 5.5-7.0% growth.

Auto parts maker $LKQ reported 3Q16 earnings of $122.7MM, an increase of 21.1% from a year ago. Earnings per share rose 21% to $0.40. Revenue rose 30% to $2.39Bil, helped by strong demand for the company's products and services.

$LKQ said its assumed tax rate for 2016 remains constant at 34.75%. The company's current guidance for cash flow from operations is in the range of $585-635MM, up from its previous guidance of $575-625MM. $LKQ indicated that its guidance for capital spending remains unchanged for 2016.

$LKQ said its acquisitions of Rhiag and PGW were financed by drawing down on its line of credit and the completion of a euro note offering back in April 2016. The company closed 2Q16 with approx. $273MM in cash, of which $196MM was held outside of the US. $LKQ's net debt was approx. $3.1Bil.

$LKQ's after-tax cash flow from operations during 1H16 was approx. $355MM, as the company experienced strong cash earnings and only a moderate increase in working capital. In 1H16, the company deployed a little more than $1.9Bil of capital to support the growth of its businesses, including $102MM to fund CapEx & almost $1.8Bil to fund acquisitions.